Industries are keen to explore the invaluable benefits of blockchain. So far, a myriad of industries for instance the supply chain and agriculture already have. Land management and real estate will soon join the crypto bandwagon. They won’t be the last, other numerous projects are waiting in line as blockchain technology advances.
There are multiple blockchain use cases in land management that can be taken to sustain population growth. The real estate sector today is crammed with cases of multiple stakeholders, fragmented properties, unclear land titles, fraud, corruption and an opaque system. And that’s why a blockchain powered land management and real estate platform has never been needed more than it is today.
The Real Estate Sector
The real estate sector is a great contributor to the economic growth of the country. GDP is often impacted by the robustness of a country’s land management system. India, for instance, has a real estate about 8% of its GDP which set to increase to 13% by 2025. At the same predicted period, its real estate sector will reach $1 trillion. This information reveals the impact real estate has on GDP for any region.
A robust system that is cost effective, transparent, efficient and secure is therefore necessary for this projected growth to take place.
Blockchain Technology Features
Blockchain is at the center stage in the real estate sector transformation. An integrated approach with blockchain is particularly helpful in getting rid of the outdated methods in the real estate industry.
Below are some features of the technology that can add value to traditional land management methods
Decentralization feature in blockchain ensures information is not stored on a single location. Therefore in case of a server fail, data is not lost.
The peer to peer feature is such that any transactions in the system are between the two involved parties, without an intermediary.
The uniform ledger ensures information stored is uniform across all stakeholders.
Transparency also ensures the information is visible to all the involved parties.
Traceability and the fact that the blockchain can never be modified reduces the risk of fraudulent activities as they can always be traced back.
Information on the ledger is real time. Meaning information is real time updated across all copies on the platform by stakeholders.
Blockchain Use Cases In Real Estate
Land records are still stored on paper today, despite the advancements in technology. More so, they are kept in centralized siloed locations. In the event of a catastrophe, man-made or natural, information gets lost or destroyed. Such was the case with Haiti when an earthquake destroyed most of land records in the city, leaving behind destruction and dispute over land titles.
This is one area that blockchain can solve efficiently by ensuring the records are stored on the shared platform. It also makes the records less susceptible to manipulation and fraud since information once entered in the network can neither be edited nor deleted.
The current system is also stuffed with too many stakeholders and the information is inaccurate and fragmented. Customers often have to go through the same procedure multiple times. The public ledger blockchain system holds one truth of uniform data across millions of nodes. All stakeholders are in possession of the copy. Blockchain eliminates the need for trust among stakeholders.